ASX
chief executive
Elmer Funke Kupper
received a $3 million termination pay-out from
Tabcorp
last year, leaving the top job at the gaming group with a total pay packet of $4.85 million. Mr Funke Kupper – who earned $1.97 million this year as head of the ASX – is also on the board of Tabcorp earning more than $80,000 annually in directors’ fees.

The ASX chief joined the Tabcorp board as an “observer" in January and rejoined full-time in June after the ASX changed its rules to allow him to hold the outside board position. “As the company’s former CEO, Elmer has deep knowledge of Tabcorp’s businesses and strong relationships with our partners," Tabcorp said in its annual report released yesterday.

Mr Funke Kupper’s potential $4 million ASX contract, together with the lucrative Tabcorp pay-out elevate him to one of the country’s highest paid executives.

He took home $4.85 million despite his performance rights becoming worthless. The accounting value of the rights dragged down his total pay packet down by almost $300,000, according to the Tabcorp report.

The gaming giant recently announced it had lodged a $686.8 million claim against the Victorian government in the Supreme Court of Victoria. They have joined Tatts which is also making a $490.5 million claim, alleging the government breached its pledge to renew the company's gaming licences.

The court action centres on the previous Labor government’s decision to axe the licence duopoly over poker machines shared between Tatts and Tabcorp Holdings which allowed pubs and clubs to own gaming machine “entitlements".

“The state of Victoria’s obligation to make the payment to Tabcorp came into existence when it privatised the Victorian TAB and listed Tabcorp on the ASX in 1994," the company said in its report.

“Your directors have given due and careful consideration to the decision to lodge this claim. The board considers that the company is entitled to a payment, and that the company has a duty to Tabcorp’s many individual shareholders to pursue that entitlement," the company said.

Related Quotes

Company Profile

David Attenborough joined as Tabcorp’s new CEO last year and received a pay packet of $2.2 million.

He also receives $3500 in living away from home expenses until 2014, four return business class tickets for travel between Australia and South Africa and the company pays his fringe benefits tax for housing and location assistance.

Tabcorp reported a net profit of $340 million, up 12.7 per cent for the year to June. “This result reflects the benefit of lower interest expense following the demerger of Echo Entertainment Group," the company said.